Award

East Wick and Sweetwater - Modifications to Development Agreement

LONDON LEGACY DEVELOPMENT CORPORATION

This public procurement record has 1 release in its history.

Award

10 Oct 2022 at 13:05

Summary of the contracting process

The London Legacy Development Corporation has awarded a contract for the modifications to a Development Agreement for the East Wick and Sweetwater project in the construction industry. The contract was signed on October 7, 2022, and is valued at GBP 800,000,000. The procurement method used was the award procedure without prior publication of a call for competition.

This tender for the East Wick and Sweetwater project presents significant business growth opportunities for companies in the construction industry. Businesses specialising in construction work for multi-dwelling buildings and individual houses would be well-suited to compete. The tender process has now reached the award stage, with the active status of the contract signifying an ongoing opportunity for interested parties.

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Notice Title

East Wick and Sweetwater - Modifications to Development Agreement

Notice Description

Modifications to a Development Agreement for the development of the site known as East Wick and Sweetwater in the Queen Elizabeth Olympic Park.

Lot Information

Lot 1

London Legacy Development Corporation (LLDC) entered into a Development Agreement (DA) with East Wick and Sweetwater Projects (Holdings) Limited on 27 February 2015 for the development of the site known as East Wick and Sweetwater in the Queen Elizabeth Olympic Park, Stratford, London. The DA was varied by a supplemental agreement and deed of variation dated 14 July 2016, a deed of variation dated 26 July 2016, a deed of variation dated 15 December 2017 and a deed of variation dated 21 December 2018. The parties have entered into a further deed of variation and ancillary documents to amend the DA to incorporate various modifications including the following: (i) Reduction in share of returns payable to LLDC; (ii) A private unit by private unit overage provision for further payments to LLDC above the fixed returns for sales of private units; (iii) Simplifications to the arrangements governing LLDC's share of Private Rental Sector revenues whereby 16% of the Private Rental Sector units in Phases 2-7 are owned outright by LLDC; (iv) Modifications to termination payments to cover costs incurred; (v) Introduction of tighter development milestones requiring specified delivery by the Contractor in respect of each of the phases; (vi) "Golden Brick" arrangements in respect of blocks containing 100% affordable housing units or 100% private rented units; and (vii) the removal of Phase 6 from the DA. LLDC considers that the modifications have been brought about by circumstances which a diligent contracting authority could not have foreseen, they do not change the overall nature of the contract and the price has not increased by more than 50% of the value of the original contract. The modifications have been brought about as a result, inter alia, of adverse market conditions which have been caused in part and exacerbated by the COVID-19 pandemic. LLDC therefore considers that Regulation 72(1)(c) of the Public Contracts Regulations 2015 applies. Furthermore, LLDC considers that the modifications are not "substantial" for the purposes of Regulations 72(1)(e) and (8). The modifications do not render the contract materially different in character from either the original DA or the immediately preceding version. Whilst some of the modifications when considered alone are in the Contractor's favour, LLDC has sought to counterbalance this with modifications in its own favour, so that the effect on the overall economic balance is neutral. LLDC therefore considers that Regulation 72(1)(e) also applies. As a result, LLDC considers that the modifications may be made without a new procurement procedure.

Procurement Information

See explanation at Section II.2.4.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-037466
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/028421-2022
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work


CPV Codes

45000000 - Construction work

45211000 - Construction work for multi-dwelling buildings and individual houses

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£800,000,000 £100M-£1B

Notice Dates

Publication Date
10 Oct 20223 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
6 Oct 20223 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
LONDON LEGACY DEVELOPMENT CORPORATION
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
E20 1JN
Post Town
East London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI4 Inner London - East
Small Region (ITL 3)
TLI41 Hackney and Newham
Delivery Location
TLI London

Local Authority
Newham
Electoral Ward
Stratford Olympic Park
Westminster Constituency
Stratford and Bow

Supplier Information

Number of Suppliers
1
Supplier Name

EASTWICK AND SWEETWATER PROJECTS (HOLDINGS

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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